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Royal London reviews Pru annuity referral deal

Royal London is reviewing its annuity referral deal with Prudential following this year’s Budget reforms.

Currently, Royal London earns commission where it refers retirees to the Pru for annuity purchases.

From April next year, savers will have access to a new range of pension freedoms and Royal London says it will review the tie-up as a result.

A Royal London spokesman says: “We are seriously looking at [the annuity referral deal] in light of the pension changes the Chancellor has brought in.”

This comes after the two providers came under fire for failing to highlight the option of an enhanced annuity to a Royal London customer who had informed them he was suffering from cancer.

Legal and General has referral agreements in place with Zurich, Axa and Skandia.

L&G head of strategy Tim Gosden says the provider is in talks with the firms about the arrangements following the Budget changes.

He says: “These are contractual agreements. We are in discussions with all of our partners about the changes that are going to occur and how our proposition can help to meet customer’s circumstances.”

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